MachineryLink

CNH Industrial forecasts lower sales for 2025, as it released its first quarter 2025 financial report this morning. CNH also announced a price increase beginning Thursday, May 1.

CNH describes the price increase as moderate, "in the low single digit(s)," adding the increase is a "regular price adjustment... on the back of cost movements." CNH is the parent company of Case IH and New Holland.

CNH's first quarter report comes as no surprise. Retail sales of both agricultural and construction equipment industry-wide have been off for much of the past year; even off sharply in recent months. North American demand for high horsepower tractors among all manufacturers, CNH and all others, is projected to be off 25% to 35% this year. Similarly, combine sales are expected to be down 20-30% from 2024.

CNH now projects net sales for 2025, compared to 2024, will be off between 12% and 20%, year-over-year. Previously, CNH had projected sales to be off 13% to 18%, compared to 2024. For the first quarter compared to the same first three months of 2024, CNH's net sales are down just less than $1 billion or 23%.

To moderate the impact of decreased sales and the not-fully-understood impact of tariffs, CNH will continue to drive down equipment inventory by reducing factory production hours and production of new machinery to below retail demand. CNH is asking parts suppliers to absorb some of the impact of tariffs. The manufacturer is also on-watch for potential suppliers with U.S. bases of operation.

CNH does source 70% of its parts from the U.S. and another 9% from Canada and Mexico. Two-thirds of its production is based in the U.S., from tractors in Racine, Wisconsin, and Fargo, North Dakota, combines in Grand Island, Nebraska, and hay and forage tools in New Holland, Pennsylvania. Among CNH, larger imports are planters from Canada, small and medium tractors from Turkey and medium tractors from the U.K.

For the quarter ended March 31, CNH is reporting net income of $132 million sales (compared to $369 million in the first three months of 2024) on net industrial sales of $3.172 billion (down 23% or just shy of $1 billion) compared to the first quarter of 2024.

Agriculture net sales reported by CNH decreased in the first quarter 2025 by 23% to $2.58 billion versus $3.373 during the same period of 2024.

Dan Miller can be reached at dan.miller@dtn.com

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